Research On Executive Incentive Mechanism Of Y Company Based On EVA

In modern companies,where the right of operation and ownership are separated,due to the asymmetry of information,unequal rights and responsibilities,imperfect contracts and other reasons,there is a problem of principal-agent,and the operator cannot act in accordance with the wishes of the shareholders.They often harm shareholders' interests in order to realize their own interests,thus causing further problems such as "moral hazard" and "adverse selection".In addition,today's increasingly fierce market competition has put forward further higher requirements for the management of the company.In this regard,a scientific and reasonable incentive mechanism for senior executives can assess whether the executives have fulfilled the business objectives of the client and promote the sustainable and healthy development of the enterprise..Therefore,in order to alleviate the conflict between agent and principal,to make the interests of managers and shareholders consistent,to reduce the cost of principal-agent,and to maximize the value of enterprises.It is particularly important to establish a scientific and effective executive incentive system.Based on the principal-agent theory,human capital theory,enterprise value theory,incentive theory and other relevant theories,combined with the domestic and foreign scholars on the EVA and the incentive mechanism of senior executives research theoretical results,the use of normative analysis,case study,Literature research,quantitative and qualitative analysis are combined to integrate EVA into the incentive mechanism of Y Company.In view of the current situation of the company's executive incentive mechanism,the problems and shortcomings are analyzed.On this basis,the necessity and feasibility of the relevant analysis are analyzed,and the specific accounting adjustment and calculation of the EVA of the company are carried out,and the establishment of the accounting system based on E VA Y company executive incentive mechanism design,including the EVA bonus bank design and EVA based virtual stock options plan design.Finally,the company's executive incentive mechanism for the specific situation,put forward further implementation proposals.This paper studies the incentive mechanism of Y company based on EVA,in order to provide a more reasonable reference template for the company's future executive incentive mechanism,so that the company can fully mobilize the enthusiasm of senior executives.Make scientific and sensible decisions to create greater value for owners,but also hope to provide some reference and inspiration for other similar enterprises to develop executive incentive mechanism.